Course: Microeconomics

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Course title Microeconomics
Course code EVS/NAMIB
Organizational form of instruction Lecture + Seminary
Level of course Master
Year of study not specified
Semester Winter
Number of ECTS credits 6
Language of instruction English
Status of course Compulsory
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Course availability The course is available to visiting students
  • MAJEROVÁ Ingrid, Dr. Ing.
  • TULEJA Pavel, doc. Ing. Ph.D.
Course content
Introduction to microeconomic theory The basic principles of economics, role of models in economics, economics division, methods and tools of economic analysis. The essence of market, exchange and prices and their role in the economy. Types of markets and their actors. Elements of markets - supply, demand, price, and different types of competition. Analysis of market mechanism. Theory of rational choice, consumer demand theory Theory and preferences based on the theory of consumer demand. Budgetary limitations, the consumer's preference, cardinal and ordinal view on the benefits measuring method, problems of optimal consumer choice. Derivation of individual demand curves and elasticity of demand. The choice of technology and production, costs, revenues and profit Theory of the firm and the choice of manufacturing process. Technological limitations of the firm, short and long term production function, cost optimum of the firm. The correlation between the returns of scale and cost functions. Revenues on the perfectly and imperfectly competitive market. The costs in the short and long run. Economic profit. General equilibrium and efficiency General equilibrium analysis. Pareto efficiency. The conditions under which the economy achieved efficiencies in the exchange. Efficiency in production and efficiency in the production mix. Firm behavior in perfectly competitive markets Characteristics of a perfectly competitive market, the choice of optimal production scale, short-term end of production and the permanent withdrawal of the firm from a perfectly competitive market. Supply curve perfectly competitive firm and market supply curve in the short and long run. Firm behavior in imperfect market Forms of imperfect competition: monopoly, oligopoly and monopolistic competition. The effects of various forms of imperfect competition on market supply and demand. Efficiency of the market. Microeconomics aspects of labor and capital market Demand for labor force. Individual and market labor supply. Marginal revenue of product, marginal cost of product. The labor market in conditions of perfect and imperfect competition. Monopsony. Capital, capital goods and their forms, capital market. Present and future value, net present value of future revenues and income on capital. Externalities, public goods and imperfect information Causes of limited market efficiency. Public goods, positive and negative externalities, information asymmetry in the market. The issue of monopoly power. The role of the state in the market economy activities leading to the elimination of the negative impacts of market failures.

Learning activities and teaching methods
Lecture with presentation in Power-point
  • unspecified - 39 hours per semester
  • unspecified - 26 hours per semester
  • unspecified - 40 hours per semester
  • unspecified - 72 hours per semester
Recommended literature
  • KRUGMAN, P. and WELLS, R. Microeconomics. New York: Worth Publisher, 2015. ISBN 978-1464143878.
  • MANKIEW, N.G. Principles of Microeconomics. Stamford: Cengage Learning, 2012. ISBN 978-128516905.
  • MANKIEW, N.G. Study Guide for Mankiw's Principles of Microeconomics. Stamford: Cengage Learning, 2012. ISBN 978-1285864242.
  • McCONNEL, C., BRUE, S. and FLYNN, S. Microeconomics: Principles, Problems, & Policies. McGraw-Hill Series in Economics, 2014. ISBN 978-0077660819.

Study plans that include the course